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SA Tourism opted not to partner with Thebe Reed for the Indaba trade show because it became evident that the financial models of the two parties were not complementary, says Acting CEO and COO, Sthembiso Dlamini.
The trade can expect to see a remoulded Indaba trade show in 2018, as SA Tourism takes serious stock of its future direction.
In an interview with Tourism Update, SA Tourism’s Acting CEO and COO, Sthembiso Dlamini, explained reasons behind the tourism board’s decision to reject the strategic partner route, and reshape the Indaba and Meetings Africa trade shows into the future through its own, newly established Exhibition and Strategic Events division.
Dlamini said the Ministerial Review instituted by Tourism Minister Derek Hanekom in 2015 suggested three options for future management and enhancement of the trade shows – insourcing, a management contract, or the recruitment of a strategic partner on a 50/50 risk, investment and profit-sharing basis.
Analysis of the options was made with the input of consultants Grant Thornton, and it was felt the third option should be pursued. Subsequently the expression of interest was advertised and four proposals received. One proposal, submitted by Thebe Reed, organisers of World Travel Market Africa (WTM Africa), made it through the Bid Evaluation Committee to the Bid Adjudication Committee. At this point, with the input of Deloitte’s as technical advisers, it became evident that the financial models of the two parties were not complementary.
Further, the improvements promised through the strategic partnership were not dissimilar to those SA Tourism had already begun introducing. “We felt we were already on the way to enhancement and were not sure a strategic partner could add anything of value,” commented Dlamini.
For the moment, the National Conventions Bureau at SA Tourism, headed by Executive Manager, Amanda Kotze-Nhlapo, is doubling up as Exhibition and Strategic Events division, as the future shape of the division and the trade shows is streamlined or repositioned for 2018 onwards. Dlamini is in the final stages of appointing a GM: Strategy and Events Unit, and hopes to make an announcement at month end.
For next year, Indaba will remain in Durban (May 6-8) and the contracts of exhibitions management agency Pure Grit, and exhibition stand supplier, Scan Display Solutions, will be extended for a year, as lack of time prevents the issuing of tenders for these services. Meetings Africa will once again take place in Johannesburg from February 28-March 1.
SA Tourism has begun tackling a number of criticisms that have bedevilled Indaba. This year buyer qualification was made stricter for both international and domestic hosted delegates, who are now held accountable for commitment to a minimum number of appointments. The result was an increase of 3 000 appointments at Indaba 2016, says Dlamini.
In response to accusations of lack of engagement with exhibitors, SA Tourism held provincial exhibitor briefing sessions across the country this year. They included a training component presented by Tourism Enterprise Partnership (TEP), and although these were aimed at SMMEs, they were appreciated by exhibitors at all levels, says Dlamini. She intends holding trade debriefing sessions post last month’s Indaba, to assist with fine tuning at Indaba 2017.
Dlamini says relevance of product to the international market, sometimes questioned by Indaba attendees, is gauged by the tourism board’s Strategic Research Unit and Country Managers. She is also adamant that the show continues to promote domestic travel along with international, in keeping with SA Tourism’s brief. “If we don’t promote domestic travel, we are in trouble, for as soon as there is a negative shift in international, we rely on domestic.”
Indaba will also retain its Pan-Africa thread. This year 14 African countries were present, and their Ministers of Tourism took the opportunity to meet and share ideas on the growth of travel to the continent.
On the question of commercial sustainability, Dlamini says while the show covered its costs, it has to be borne in mind that, along with business, the goal of Indaba is to showcase the country and help the trade grow its business. The exposure of the SMME sector was an investment in the future of the industry.
Next year SA Tourism will once again offer its support to the We Are Africa exhibition in Cape Town, which promotes both inbound and outbound travel. Dlamini says the show attracts top-notch buyers with a focus on luxury products, while Indaba’s product portfolio ran across the board. “If the buyers are here, we will take the opportunity to be involved,” she says. Similarly, SA Tourism would work with other platforms – such as WTM Africa – and did not view them as competition.
Source: tourismupdate.co.za
